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Financial Literacy Flashcards | StudBud
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Financial Literacy
Financial Literacy
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SCIT Summer Youth program 2025 Financial Literacy Workshop
Flashcards
18 cards
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Practice quiz
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Questions
18
Answers
1
What is the main difference between a debit or credit card?
Debit builds credit score
Debit borrows money
Debit draws from existing funds; credit borrows money
Credit requires a bank account; debit does not
2
What is a VARIABLE expense
Saving money to invest into stocks and bonds
Allocating a certain % of your paycheck into your savings
Costs that stay the same month to month
costs that change from period to period based on other factors
3
A fixed expense is a cost that remains the same from month to month
True
False
4
What is a budget?
A type of bank account
A plan for spending and saving money
A loan you must repay
An insurance policy
5
Does a 401k plan save for your retirement?
True
False
6
What is the maximum percentage that experts recommend you use of your total credit card limit?
20%
50%
40%
30%
7
Which of these is a bank account used for everyday transactions?
Checking account
Savings account
Debit card
Money market fund
8
What is considered a 'want' rather than a 'need'
Nutritious food
Basic housing
Designer clothing
Utilities
9
What determines the amount of taxes someone pays?
Level of education
Age
Gross income
Net worth
10
What's the largest contributing factor to your credit score?
payment history
salary
credit mix
debt to income ratio
11
What is an example if a VARIABLE expense
Gas
Car payment
Netflix
Rent
12
What is the 50/30/20 rule?
50% to savings, 30% towards needs, 20% towards wants
How much you should have saved for retirement @50, 30 , and 20 years of age
50% of take-home pay towards needs, 30% towards wants, 20% toward savings
50% in stocks, 30% in bonds. 20% in savings
13
Why is it important to set financial goals?
Provides direction and motivation to save and invest
Ensures you can avoid all taxes
Guarantees high investment returns
Allows spending without a plan
14
GDP is the dollar value of all final goods/services and the measure of a country's total production output.
True
False
15
Which of these is a emergency fund?
A retirement account
Money set aside for unexpected expenses
A credit card balance
Funds invested in the stock market
16
How much do experts recommend to keep in emergency savings fund?
3-6 months of your monthly housing or rental costs
$20,000
3-6 months of your gross-pay
3-6 months of your essential living expenses
17
Which of the following is a FIXED expense
Movie tickets
Rent
Groceries
Dining out
18
What are some common money management mistakes to avoid?
Not saving money
Overusing credit cards
Not tracking spending
All of the above
